What are n predictions of model

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Q. Stokey (1998, p. 22), e.g., states that optimal regulation problems analyzed here can be interpreted, roughly, as positive models of democratic societies in which income is not too unequally distributed. As many of countries in samples for which environmental Kuznets curves have been estimated are neither democratic nor can at best be characterized by an equal income distribution, a motivation for our study is provided. Reasonable to assume that disutility of pollution is related to flow of new pollutants and it is thus adequate to use a static model. What are n predictions of model?

Reference no: EM1369490

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